Energy sector leads ASX gains as China data spurs oil prices
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The news: Oil and gas companies advanced as oil prices started the week higher, after upbeat manufacturing data from China boosted investor sentiment and offset uncertainty posed by impending US tariffs on China, Mexico and Canada.
The numbers: Karoon Energy (2%), Woodside Energy (1.4%), Beach Energy (1.4%), Santos (0.9%) and Ampol (0.6%) were all trading higher at 2:45pm AEDT.
Energy, up 1.7%, was the best performing sector as the ASX 200 index rose 0.6%. Uranium miners Boss Energy (5.7%), Paladin Energy (3.6%) and Deep Yellow (2.4%) also rallied, as did coal miners Whitehaven (1.8%) and New Hope (0.5%).
Benchmarks Brent crude and West Texas Intermediate were both up 0.7%, to USD73.29 ($117.9) and USD70.24 a barrel respectively.
The context: Official data on Saturday showed that China's manufacturing activity expanded at the fastest pace in three months in February, Reuters reported.
The data increased expectations for future demand from the world's largest crude importer, even as the US introduces an extra 10% tariff on Chinese products from Tuesday. The move is expected to drag on prices ahead of potential retaliatory measures.
Meanwhile, sentiment improved after European leaders rallied behind Ukraine during a London summit on Sunday. British Prime Minister Keir Starmer urged his counterparts to step up defence efforts for Ukraine, while Ukraine President Volodymyr Zelensky told reporters a deal for the US to jointly exploit minerals in his country was ready to sign.
